Economy/Resources - 246. page

China Youth Daily listed the challenges for college graduates to find jobs: One, irrational industrial structure makes manufacturing the strongest industry in China and other industries such as design, supply chain, and services that need more college graduates weak. Second, the large gap in social security benefits makes government or state-owned enterprises, offering more benefits, more attractive than agriculture or private companies, offering limited or even no benefits. Third, national monopolies prevent private enterprise from entering certain industries and thus creating jobs.

This year, China will have 7 million college graduates enter the job market.

Source: China Youth Daily, May 1, 2009
http://zqb.cyol.com/content/2009-05/01/content_2648156.htm

Although it has been affected by the global economic crisis, nonetheless, China’s media industry has grown to a record high in recent years, with expenditures exceeding 420 billion yuan in 2008, double the number in 2004.  Despite the decline in the economy that has resulted in obvious difficulties in the media industry, China still expects a gradual increase, possibly reaching 530 billion yuan in 2010.

Source: China News, April 27, 2009
http://www.chinanews.com.cn/cj/kong/news/2009/04-27/1666331.shtml

International Herald Leader, a newspaper under Xinhua, published an article reporting that it became popular for foreign business invested in China to take their money and run away, abandoning their companies or factories in China and without filing for bankruptcy.

There are reasons for foreign investors to choose the “flee” strategy instead of a normal exit process. First, China has a lengthy process for foreign companies to terminate business in China. The bankruptcy process lasts 65 to 165 days. Some local governments even drag it to six months or a year. Second, China’s law requires the company to bear “unlimited liability” for its debt even after it declares bankruptcy.

“(If it is) easy to enter but hard to exit, (it) is definitely not a good investment environment.” said a Japanese trade promoter in Beijing.

Source, International Herald Leader, April 24, 2009
http://news.xinhuanet.com/herald/2009-04/24/content_11248230.htm

China News reported that on April 12, 2008, Chen Lei, the Minister of the Ministry of Water Resources said that China lost more than eight million acres of cultivated land due to soil erosion in the past fifty years, averaging an annual loss of 160 thousand acres.

Chen Lei said that the northwest region loses one centimeter of surface soil every year. In some parts of northeast China, which has always had rich soil, the depth of cultivated soil has decreased from one meter to less than twenty centimeters. 77% of the land in northern China has less than 30 centimeters of surface soil.

Soil erosion not only destroys soil resources, but it is also a main factor for pollution. China’s scientists estimate that soil erosion creates economic loss of 2.25% of the GDP. The environmental damage is immeasurable.

Source: China News, April 12, 2009
http://www.chinanews.com.cn/gn/news/2009/04-12/1642204.shtml

Economists are concerned that the growth may not be sustainable, according to a panel discussion during a State TV program. Large State-owned enterprises saw a sharp increase in profits, according to Li Rongrong, Director of State-owned Assets Supervision and Administration Commission of the State council on April 19, 2009. In response, economists at the panel indicated that such growth was primarily fueled by preferential treatment and State monoply, thus its sustainability questionable. Others found it worrisome that 4,200 small to mid companies have been declining in contrast to the thriving large State-owned enterprises.

Source: China Central TV, April 24, 2009
http://news.cctv.com/china/20090424/101947.shtml

The State Council met on April 22, 2009 to discuss stimulus measures to stabilize the Chinese agricultural sector amid the international financial crisis, reported Xinhua. Premier Wen Jiabao presided over the Council’s executive meeting. The meeting reached a consensus that the international financial crisis is deepening and its negative impact on the Chinese agricultural sector is emerging. With global commodity demand shrinking and prices falling, the downturn of agricultural exports coupled with slack domestic growth has pushed down agricultural prices and production efficiency in China, making it increasingly difficult to maintain a stable agriculture sector and to increase farmers’ income.

Source: Ministry of Agriculture, April 23, 2009
http://agri.gov.cn/jjps/t20090423_1260834.htm

Mr. Xi Xiaoming, a senior official of the Chinese Supreme Court, recently said there has been a steady increase in withdrawal of foreign investments. Domestic private enterprises also face challenges due to the global financial crisis. 

A statement by the Chinese Ministry of Commerce indicates that the total foreign investment in January was $7.5 billion, a decrease of 32.6% compared to the same period last year.

Source: EpochTimes, April 18, 2009
http://www.epochtimes.com/gb/9/4/18/n2499031.htm

China National Radio reported that China and Russia signed an intergovernmental agreement on oil cooperation in Beijing on Tuesday. Under the intergovernmental agreement, China will provide a $25 billion loan to Russia, Russia will use oil as collateral. Russia will sell China 15 million metric tons of oil from 2011 to 2030, using the East Siberia-Pacific Ocean (ESPO) pipeline.

Energy Resources are currently the number one target of China’s overseas investment. Since the beginning of 2009 China has signed several "loan for oil" cooperation agreements with other countries, including a $10 billion loan to Brazil on February 18, a $4 billion loan with Venezuela on February 21, and a $1 billion loan with Angola on March 13. On April 5, President Correa of Ecuador announced a possible deal of exchanging crude oil for a $1 billion loan from China.

On April 16, China National Petroleum Corporation signed a contract to provide a $5 billion loan to Kazakhstan’s KazMunaiGaz National Co. to jointly buy AO Mangistaumunaigas, an oil and gas company in Kazakhstan.

Source: China National Radio, April 21, 2009
http://www.cnr.cn/gundong/200904/t20090421_505310249.html